Cannabis Producer License in New Mexico
Updated July 8, 2021 | New Mexico recently announced the rules for cannabis producers. The application window is scheduled to open by September 1, 2021, so if you are interested in a cannabis producer license in New Mexico, now is the time to start your application. Our New Mexico cannabis consulting firm explains the rules and regulations for this license type.
What is a New Mexico Cannabis Producer License?
Before we dive into how to apply and win a New Mexico Cannabis Producer License, let’s take a step back and discuss the Producer license and what it permits you to do.
To begin, the division will issue two types of New Mexico Cannabis Producer Licenses:
- Cannabis Producer License
- Cannabis Producer Microbusiness License
First, a Cannabis Producer License in New Mexico allows you to conduct all activities related to cannabis cultivation. It also allows you to transport unprocessed cannabis (aka buds/flower) to other cannabis business establishments and sell unprocessed cannabis wholesale.
On the other hand, a New Mexico Cannabis Producer DOES NOT allow you to process (extract) cannabis or create infused products.
Similarly, a New Mexico Cannabis Producer MicroBusiness License can conduct the same activities except that it is limited to a maximum of 200 mature cannabis plants at any one time.
Timeline for New Mexico Cannabis Producer Licensing
As eluded to earlier, the division is required to begin accepting applications for the New Mexico Cannabis Producer License by September 1, 2021. Once the commission deems the application is complete, the division must issue or deny a license within 90 days.
Once awarded, the license will be valid for a period of 12 months. Thereafter, the licensee must apply to renew their New Mexico Cannabis Producer license and pay the applicable fees.
Fees for Cannabis Producer License and Cannabis Producer Microbusiness Licenses
At the time of submitting your Producer License application, you will have to pay the licensing fees and annual plant fees. For a New Mexico Cannabis Producer License, the license fee is $2,500 annually (and each additional licensed premise is $1,000 annually). Upon approval or renewal of the Cannabis Producer License in New Mexico, you will also have to pay annual plant fees of $10 per mature plant.
Similarly, for a New Mexico Cannabis Producer Microbusiness License, the fee is:
- $500 annually for licensees growing 100 plants or less
- $1,000 annually for licensees growing 101 to 200 plants.
In contrast to the Producer license, the Producer Microbusiness License DOES NOT have to pay annual per plant fees.
How to Apply for a New Mexico Cannabis Producer License
According to our New Mexico Cannabis Consultants, the department will require applicants to apply for adult-use cannabis licenses in New Mexico using an online application. If the application is deemed incomplete upon submission, the division will allow applicants 90 days to submit a completed application.
Additionally, the division may request clarifying information from applicants. In this case, applicants will have 90 days to provide all necessary information requested. This is similar to the deficiency notices that Illinois issued to applicants for adult-use cannabis business licenses.
License and additional premises application or renewal fees must be paid at the time of application submission. Annual plant fees must be paid upon the division’s approval of the initial application or renewal application and approval of the number of cannabis plants that a licensee may produce.
If you are applying for a cannabis producer license in New Mexico, you will have to undergo a criminal history screening.
Application Requirements for New Mexico Cannabis Producer Licenses
Our cannabis application experts in New Mexico dissected the application requirements for marijuana producer licenses. Below is a summary of the New Mexico Producer License application requirements. At the end of this section, you should know how to apply for a New Mexico Cannabis Producer License.
Important to note, you do not have to be a New Mexico Resident to apply for Cannabis Producer License. However, the State intends to give preference to applicants who are New Mexico Residents.
Applicants for New Mexico Cannabis Producer Licenses must provide:
- Contact information of the applicant and cannabis establishment, including demographic information;
- Proof that each controlling person is over 21 years old;
- Diagram and description of the location of the land or facility to be used;
- Documentation of applicants ownership or legal authority to use property and facility;
- Demonstrates of legal rights to use the quantity of water required for the proposed Cannabis Producer;
- Plan to use water and energy reduction opportunities;
- A copy of a current business license, fire inspection report, certificate of occupancy, and zoning approval;
- Certification the applicant is in good standing with the New Mexico secretary of state;
- A list of all controlling persons, a list of other current or prior licensed cannabis businesses, documentation of the applicant’s or a controlling person legal name change, and criminal history screening documents;
- A detailed description of any criminal convictions of the applicant and any controlling person;
- A description and a legible electronic image of the labeling and packaging;
- The initial number of mature cannabis plants the applicant proposes for production and the amount of water the applicant plans to use on a monthly basis for a twelve-month period;
- A summary of the proposed operations;
- Certifications the applicant will adhere to all rules and regulations;
- Applicant’s social and economic equity plan; and
- Payment of any required fees.
Yes, that is a lot of information to digest. Thus, we encourage you to reach out to our New Mexico Cannabis License Consultants to answer any questions you may have.
Premises Diagram for Cannabis Producer in New Mexico
Also, an applicant has to submit to the division a complete and detailed diagram of the proposed premises. The division determines whether the premises meet the requirements of the Cannabis Regulation Act, the Lynn and Erin Compassionate Use Act, and division rules. The diagram shall show:
- First, the dimensions of each are that cannabis plants shall be cultivated
- Locations and dimensions of other areas with horticulture cultivation procedures
- Lastly, equipment and requirements for cannabis activities. For example, this includes entrances and exits, interior partitions, location of lights in the canopy, walls, rooms, windows, etc. With that, you must state what activities are done in each area within the premises.
Additionally, the department includes other details about what exact information shall be on the diagram. Contact our cannabis application writers in New Mexico to make sure all of the correct information is on your application.
State and Local Laws
Also, all applicants must make it evident that they can comply with state and local laws in New Mexico. This includes laws for construction, occupancy, operation of the cannabis establishment, employment, zoning, building and fire codes, water use, and licensing. Secondly, you must provide proof of how you will follow all of these requirements within your application.
In relation to state laws, New Mexico has certain rules for licensure of federally recognized Native American Nation, Tribe, or Pueblo. Also, the division will not approve an application for licensure for a cannabis business in New Mexico that operates within the exterior boundaries of a federally recognized Native American Nation, Tribe, or Pueblo located in the state. However, this is unless the tribal government and department enter an intergovernmental agreement that allows for the cannabis business to be on this land.
So, when picking a location for your cannabis producer license in New Mexico, you have to make sure that it does not interfere with any zoning laws. Make sure to talk to our cannabis consultants in New Mexico about zoning procedures.
Age Requirements and Consumption Laws
All applicants for a marijuana producer license in New Mexico, and the employees of the business must be at least twenty-one years of age or older. In regards to consumption, licenses shall not allow the consumption of cannabis or cannabis products on the licensed premises. This is unless a cannabis consumption area has approval by the division. Additionally, licensees are allowed to conduct other licensed activities that are pursuant to the Hemp Manufacturing Act. Lastly, you can not sell alcohol within the establishment.
Additional Rules for a Cannabis Producer Licenses
If you have a cannabis producer license, you can only conduct operations on the licensed premises that are approved by the division. Additionally, multiple licenses can occupy a single licensed premise, that is if each is individually licensed by the division.
You can not transfer a cannabis license in New Mexico by assignment or to other persons/locations. If you do want to transfer a license, you can apply for an obtain an amended license. So, this is necessary if you need to change ownership or the location of a license.
Additionally, the division shall require licensees to utilize division-approved track and trace equipment, software, and services.
Social and Economic Equity Requirements for Producer Licenses in New Mexico
The division is still in the process of adopting procedures and criteria for promoting social and economic equity in New Mexico’s cannabis industry.
More specifically, the division will encourage full participation in the cannabis industry of representatives of communities that have disproportionately been harmed by rates of arrest through the enforcement of cannabis prohibitions.
They will also encourage racial, ethnic, gender, geographic diversity, and New Mexico residency among license applicants, licensees and cannabis industry employees.
Policies must also encourage representatives from rural communities that are likely to be impacted by cannabis production, including agricultural producers from economically disadvantaged communities.
To accomplish these mandates, the division establishes a goal that at least 50 % of applicants for licensure, licensees, and cannabis industry employees will represent these groups.
The division, with the advice of the cannabis regulatory advisory committee, shall solicit public input to create and implement a social and economic equity plan.
The plan shall include guidelines to determine how to:
- assess which communities have been disproportionately impacted, and
- assess if a person is a member of a community disproportionately impacted.
Our New Mexico Cannabis Consultants highly recommend that you submit an application that qualifies for Social Equity Status. To learn more about applying for a New Mexico Cannabis Producer license as a social equity applicant, please reach out and speak with our cannabis license experts.
Operational Requirements for New Mexico Cannabis Producer Licenses
Requirements for the Production of Cannabis
All production activities for a cannabis producer license in New Mexico must be done on premises that are in compliance with state and local laws. This includes laws for zoning, occupancy, licensing, fire safety, food safety, worker protections, and building codes.
Additionally, keep in mind that production can not occur at a location that is 300 feet from a school or daycare center.
Also, applicants have to create and maintain a cultivation plan. This includes information on:
- The detailed premises diagram
- Canopy areas that include square footage
- Areas outside of the canopy where there are immature plants
- Processing areas
- Packaging area
- Composting areas
- Secured areas for cannabis waste
- Areas for harvested cannabis storage
- Lastly, seed production areas that contain mature plants
Canopy Size for Cultivation
Additionally, canopies must be measured in square feet with identifiable boundaries. Keep in mind, if mature plants are cultivated with a shelving system, the surface area of each level has to be included.
In regards to canopies, you also have to create and maintain a lighting diagram. Our New Mexico cannabis consultants can assist you with this plan. This diagram has to include:
- The location of all lights in the canopy area
- The maximum wattage of each light
Lastly, other important aspects of your application for a cannabis producer license in New Mexico include a pest management plan, a cannabis waste plan, and other additional safety and health requirements.
Cultivation Limits for Cannabis Producer License in New Mexico
Finally, there are plant limit levels for this license type. All producer licenses issued on or after July 1, 2021, have to qualify as a level 1, level 2, or level 3. These levels determine how many plants you can cultivate. Take a look at this chart of the number of mature plants you can cultivate per level:
For additional details on canopies and cultivation limits, check out the rules for a cannabis producer license in New Mexico. Lastly, if you are not sure what level best suits your needs for a cannabis producer license in New Mexico, contact our marijuana consultants to walk you through the best option for you.
Security for a Marijuana Producer License in New Mexico
The security plan for a cannabis producer license in New Mexico is an important part of the application. Also, there are many rules and regulations to security within this cannabis license type, and you have to prove your capability of providing adequate security measures to the department. Some of these security requirements include:
Security Alarm Systems for Cannabis Producer Licenses in New Mexico
First, all licensees need to install and maintain an operational security alarm system. This alarm system must be monitored and provide adequate alerts when there is an alarm system failure. The board also requires that you install security alarm systems in specific areas of the building.
Additionally, the licensee must maintain the security alarm system and conduct all proper tests. Are you familiar with compliant security alarm systems? Learn more by reaching out to one of our New Mexico Marijuana Consultants.
Licensees also need to provide and maintain a digital video surveillance system that needs to comply with requirements from the department. This includes where cameras should be located and what information has to be visible within the footage. The department also requires that certain areas of the cannabis producer facility in New Mexico are filmed at all times. Some of these areas include:
- First, areas where cannabis and cannabis products are cultivated, produced, manufactured, weighed, packed, stored, loaded, prepared, or moved
- Limites-access areas
- Entrances and exits of the licensed cannabis producer facility
- All POS locations
Lastly, in regards to security, the cannabis establishment needs to have sufficient lighting and commercial-grade locks for all doors and windows. There are also strict fencing requirements for outdoor areas. In regards to security guards, there is no requirement.
If you have any questions about a security plan for a cannabis producer license in New Mexico, make sure to contact our cannabis application writers for assistance on your application.
Recall of Cannabis
Licensees shall establish and implement written procedures for recalling cannabis and cannabis products that have been sold or otherwise distributed to the public or other cannabis establishments. Recall procedures shall be made available for the division’s inspection upon request.
Tracking your Cannabis in New Mexico
Chain of custody procedures and documentation requirements are necessary for a license. The board creates these rules to ensure appropriate tracking and tracing of cannabis products. Also, you must track the:
- Originating location of the cannabis or cannabis products
- Time and date of transfer of cannabis
- Size, number of boxes, and number of pieces of product
- Internal batch or lot numbers
- Dated signature of the person receiving cannabis
Cannabis Consulting in New Mexico
To conclude, if you have an interest in applying for a Cannabis Producer license in New Mexico, or have any additional questions, contact our cannabis license consulting firm. With one of the highest success rates in the industry, we offer a variety of services to help you win a New Mexico Cannabis Producer License. Whether you need to raise capital, build a reliable team, or just need general application services, we have the tools and team to give you the best cannabis application experience.
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